A federal judge has declared a New York City law, which mandated food delivery companies to share customer data with restaurants, unconstitutional. The ruling, delivered by U.S. District Judge Analisa Torres in Manhattan, sided with DoorDash, Grubhub, and Uber Eats. These companies argued that the law infringed on customer privacy and compromised data security.
The city’s law department did not immediately comment. The law required the sharing of diners’ names, delivery addresses, email addresses, phone numbers, and order details. It was adopted in the summer of 2021 to aid restaurants recovering from the COVID-19 pandemic. Despite this, the city agreed not to enforce the law while litigation was ongoing, arguing the law protected restaurants from the delivery companies’ “exploitative practices.”
Judge Torres, in a 31-page decision, stated the law improperly regulated commercial speech and the city failed to demonstrate a substantial interest in restaurants collecting customer data from delivery companies.
Judge: NYC data law unconstitutional
Jonathan Stempel
REUTERS
NEW YORK – A federal judge on Tuesday declared unconstitutional a New York City law requiring food delivery companies to share customer data with restaurants.
U.S. District Judge Analisa Torres in Manhattan… pic.twitter.com/nTkuxugJi1
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She noted less intrusive alternatives, such as allowing customers to choose whether to share data, offering financial incentives for data sharing, and subsidising online ordering platforms for individual restaurants.
What Other Media Are Saying
- Marketscreener reports that a U.S. District Judge ruled NYC’s law requiring food delivery companies to share customer data unconstitutional, favoring DoorDash, Grubhub, and Uber Eats. (Read more)
- Bloomberg Law reports that Uber, Grubhub, and DoorDash defeated NYC’s data-sharing law, citing First Amendment violations, as a federal judge ruled the law restricts commercial speech unfairly. (Read more)
Frequently Asked Questions
Here are some common questions asked about this news
What did the federal judge rule about the NYC law on food delivery customer data?
The judge declared it unconstitutional, citing First Amendment violations.
Which food delivery companies challenged the NYC law?
DoorDash, Grubhub, and Uber Eats.
What kind of customer data did the NYC law require delivery companies to share?
Names, delivery addresses, email addresses, phone numbers, and order contents.
Why did Judge Torres rule against the NYC law?
The law improperly regulated commercial speech and violated privacy rights.
What alternatives did the judge suggest to achieve the law’s goals?
Customer consent for data sharing, financial incentives, and subsidizing online platforms for restaurants.
